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I usually say that by the point where a nytimes article is writtenabout VC it is already covering well known issues. I'm hoping that'sthe case with this water utilities article. It is a major problem. Andone that affects millions in this country. And a problem few see andfew care about.

The right way of doing things is to have a potable water systemseparate from the firefighting system. But that is too radical an idea.

No one can get 8% return in todays market without taking on additional risk. There is the mythical risk adjusted rate of return. On one end is the zero risk represented by a T bill. On the other is high risk high return of vc and hedge funds. If an instrument's return gets too high vis a vis the risk, then the price will rise and the return will drop.

Market conditions have reduced the advantage that some pension plans used to enjoy. Now everyone is fighting for the same return. No such thing as a free lunch. With enough invesments in highly risky deals some will go to zero.

It is the season for business plan competitions. The MIT Enterprise forum of DC and Balitmore will be holding their competition in a couple of months. However, I've been working with some schools on the VCIC, venture capital investment competition, where the teams of students act as investors, not entreprenerus, and go about judging/grading the companies based upon criteria that VC investors would use.

I enjoy these events, because it puts me in contact with great students, amazing companies, and it helps me remember what I didn't know about the industry